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<br />r- _ <br />.. <br />, <br /> <br />e <br /> <br />e <br /> <br />e <br /> <br />According to BOR's analysis, the installation of seven "check structures" in the <br />canal, a set of automated gages and controls and a bypass pipeline3 will reduce the <br />average annual diversion requirements of the Canal by approximately 17,500 acre-feet. <br />BOR also estimates that an additional 11,000 acre-feet can be saved by the installation of <br />a pump plant at the Highline Lake, so that supplies spilled at the lower, western end of <br />the canal can be captured and returned to the system as soon as demand catches up with <br />the available supplies. Together, these improvements are estimated to reduce the <br />diversion requirements for the Canal by approximately 28,500 acre-feet annually. <br /> <br />The Orchard Mesa Check settlement agreement, which was accepted by the water <br />court October 1, 1996, provides a key component of this proposal, since it provides the <br />mechanism for the BOR to retain much of the saved water and guidelines for declaring a <br />surplus condition in Green Mountain Reservoir when the storage contents exceed an <br />agreed upon "draw down curve." In exchange for this additional discretion in Green <br />Mountain operations, the co-applicants in the case (the U.S., the Grand Valley Water <br />Users Association and the Orchard Mesa Irrigation District) and the Grand Valley <br />Irrigation Company have agreed to limit their call for water rights administration (i.e., not <br />to exercise their power right during times of peak irrigation demand). To the extent that <br />the Grand Valley Project's reliance upon Green Mountain Reservoir releases is reduced, <br />larger and more frequent surplus storag~ conditions in Green Mountain Reservoir are <br />anticipated. Under the settlement agreement, surplus supplies would be available for <br />contract delivery to the Grand valley Power Plant or other non-consumptive industrial <br />uses (and indirectly to improve flow conditions in the 15 Mile Reach). <br /> <br />The Grand Valley Water Users Association has reviewed the proposed <br />improvements to the Government Highline Canal and agreed to support and participate in <br />the proposed project if it is assured that 1) the increased cost of operating and maintaining <br />the canal will be paid for by the Recovery Program and 2) these improvements will <br />enable the Recovery Program to provide an acceptable reasonable and prudent alternative <br />for their depletions and for repairs to their diversion structure (which may be combined <br />with plans to construct fish passage facilities in the next few years). The projected <br />operation and maintenance cost is associated with the modern electronic communications <br />and control equipment and with the pump plant at Highline Lake and is estimated by <br />BOR at approximately $1.4 million (present value, based on operation, maintenance and <br />periodic replacement of electronic components during the next 50 years). <br /> <br />The Recovery Program is likely to use the proposed state funding to reimburse the <br />GVWUA for these operation and maintenance expenses, but these details have not been <br />presented for decision yet. However, my recommendation is based primarily upon <br />considerations raised in the development of the long-term funding proposal for both this <br />Recovery Program and the San Juan River Recovery Implementation Program. In the <br />discussions between DNR, the water users, the environmental interests, the Colorado <br />River Energy Distributors Association, the states of New Mexico, Utah and Wyoming <br />and the federal agencies, we have agreed that the states will probably need to contribute <br /> <br />3 The bypass pipeline would be installed between the canal and the river just east of Palisade so that <br />unneeded supplies which may have been diverted from the river can be returned above the 15 Mile Reach. <br /> <br />3 <br />